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NZ Dairy Exports Help Sustain Trade Surplus in July

NEW ZEALAND - A recovery in dairy export prices helped boost July 2017 exports, compared with July 2016, Stats NZ said today. This led to a rare July trade surplus of $85 million in 2017.

"July months are typically deficits," overseas trade manager Tehseen Islam said. "This is the first July surplus since 2012 ($98 million) and only the 11 July surplus since 1960. This month’s surplus compares with a $351 million deficit in July 2016, in part reflecting a large aircraft import back then."

Exports rose $668 million (17 per cent) in July 2017, compared with July 2016. The rise in exports was led by higher values across a variety of commodities, especially milk powder, butter, and cheese – up $426 million (51 per cent).

The rise in dairy was the largest for any month since March 2014. The value of whole milk powder per tonne was one-third higher than a year ago, while the quantity was up 12 per cent. International dairy product auction prices rose sharply in the second half of 2016.

Imports rose $232 million (5.4 per cent) in July 2017, led by vehicles, parts, and accessories – up $154 million (25 per cent). Aircraft and parts fell, due to a large import in July 2016.

Annual goods exports back over $50 billion

Annual goods exports for the year ended July 2017 were valued at $50.5 billion, the first time they have exceeded $50 billion since December 2014. Annual exports have risen since the most-recent low point of $48.3 billion in February 2017. Of the $2.2 billion rise since February, $1.6 billion was a rise in milk powder, butter, and cheese values.

Annual imports for the July 2017 year were $53.8 billion, up $1.7 billion from the July 2016 year. Contributors to the rise include vehicles, parts, and accessories (up $1.4 billion), and petroleum and products (up $708 million). Annual import values have been over $50 billion since September 2014.

The annual deficit was $3.2 billion, down from $3.6 billion for the June 2017 year.